A day after that shocking 25% drop the news that new home sales were even worse hit the airwaves today. New home sales dropped by 1/3rd. The end of the tax credit seems to have absolutely killed the market in most of the country. Good thing Arnie and the Sacromentacrats think throwing another 200 million at the housing market is a good idea. I think it's fairly obvious that all the credits do is pull future sales back. Then when the tax credits end the crap really hits the fan.
In other news Fannie gets tough....... Ok, so not really. They are coming out with new rules making any strategic walkaways ineligible for a Fannie loan for 7 years. Oh stop it, I can't stand the pain....
They also say they will financially pursue people if they have the option. In Cali they really don't so it doesn't matter here.
And Obama is throwing another 1.5 Billion at the housing market (700 million in Cali). This is more money down the drain to try and get more mortgage mods done. After all the 75 Billion mortgage assistance program has been so successful why not expand it. I mean the redefault rate is only running about 52% after a year. That's good right?